Economics & Development

Since 2021, renewed activity across two interacting volcanic systems in the Reykjanes Peninsula has resulted in repeated fissure eruptions, tectonic deformation, and persistent seismicity. Impacts include direct damage to housing and infrastructure as well as disruption of services and economic loss. The residents of Grindavík have had to evacuate repeatedly between 2023 and 2025, leading to community stress, temporary outmigration, and business disruption. Critical assets in or near Grindavík, such as the Svartsengi Power Plantʼs geothermal/pipe and power line infrastructure and the Blue Lagoon tourism hub, are susceptible to volcanic and earthquake impacts. The area more broadly has experienced disruptions to road accessibility and telecommunications. To support recovery planning in Grindavík, Iceland, the site of ongoing volcanic and seismic activity that has forced multiple evacuations, the Technical Assistance Financing Facility provided technical assistance to decision-makers and stakeholders, including the Grindavík Executive Committee. The Grindavík Executive Committee was formed to support the community's recovery and the municipality in carrying out necessary recovery-related works. One output of that assistance is an advisory report that analyzes current risk information, identifies key challenges, and makes recommendations for resilient recovery planning in Grindavík. Some key findings of the report are highlighted in this brief. Work on the advisory report was led by a World Bank team of experts, who drew on desk research, analysis of international experience (with some 30 cases reviewed), and in-country and online consultations with stakeholders, including representatives of central government agencies, local authorities, civil society, and the private sector.

The good and promising practices presented in this annex were identified through the desk review, online surveys with OPDs and DRM authorities, and inputs from the consultative workshop. They are arranged thematically, following the analytical framework used in this diagnostic and aligned with the disaster risk management cycle, to support easy identification of relevant themes by interested stakeholders. This annex does not provide an exhaustive overview of practices across the UCPM. It reflects examples that emerged through the methodology applied in this diagnostic. While the scope of the consultancy did not allow for in-depth analysis, these examples provide a useful starting point and point to the value of further work, including dedicated research and publication. In particular, these practices would benefit from active dissemination through the Union Civil Protection Knowledge Network, relevant civil protection platforms, and OPD networks, as this can enable mutual learning, cross-fertilisation of ideas, and practical application across contexts. The annex is complemented by a separate, more detailed country-by-country overview of good and promising practices.